The European Commission confirmed in its letter of 20 October 2020 that the level 2 measures under Regulation (EU) 2019/2088 on the sustainability-related disclosures in the financial services sector, as amended (the "SFDR") will be delayed from 10 March 2021 to a date to be determined.
The European Commission (the "EC") has confirmed in a letter (the "Letter") to the European Supervisory Authorities (the "ESAs") dated 20 October 2020 that the regulatory technical standards (the "LVL 2 RTS") which implement the SFDR will be delayed.
The EC in its letter has not specified what the new foreseen compliance date for the LVL 2 RTS will be. It is, however, expected by the market that it will likely be January 2022. The EC in its Letter, however, clarifies that it will still be necessary for financial market participants (including fund managers) and financial advisers to comply with the (principles) set out in the (Level 1) SFDR, as from 10 March 2021.
This contribution analyzes the impact of the delay of the adoption of the LVL 2 RTS, as well as its implications for fund managers when complying with the SFDR, without the LVL 2 RTS in place. To provide some context to the delay and its implications analyzed in this contribution, first a brief overview of the legislative developments with respect to the SFDR will be discussed.
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Source: Agefi - November 2020